Arab Today, arab today russia central bank keeps rate unchanged on economic cooling
Last Updated : GMT 09:42:59
Arab Today, arab today
Arab Today, arab today

Russia central bank keeps rate unchanged on economic 'cooling'

Arab Today, arab today

Arab Today, arab today Russia central bank keeps rate unchanged on economic 'cooling'

Russia's central bank
Moscow - AFP

Russia's central bank on Friday opted to keep the main interest rate at 11 percent after lowering its rate five times this year, citing a serious deterioration in the economic situation.

The bank said in a statement it made the widely expected decision "due to the higher inflation risks amid persistent risks of considerable economy cooling."

The bank also gave a gloomier growth forecast for this year, predicting a contraction of between 3.9 percent and 4.4 percent in 2015.

It had previously predicted that GDP would contract by 3.2 percent. Its latest forecast is much more pessimistic than the government's estimate of 3.3 percent contraction.

The decision to keep the interest rate at the same level came after "August saw a serious deterioration in foreign economic conditions," the central bank said.

"Inflation and inflation expectations were showing a clear upward trend, impacted by the exchange rate dynamics."

The decision was expected by most economists since the central bank currently has little room for manoeuvre, wanting to lower the rate to help the economy recover but needing to protect the ruble.

In December last year, the bank hiked interest rates to 17 percent in a bid to regain control as the Russian currency plunged due to falling oil prices and Western sanctions imposed over Russia's actions in Ukraine.

Russia has subsequently cut its interest rate five times since January, most recently to 11 percent on July 31.

This level remains very difficult for businesses and households, preventing economic recovery.

As oil prices plunged this summer, the ruble fell 20 percent against the dollar, reaching its lowest level this year in August and pushing consumer prices up.

"Going forward, the economic situation will depend on the global energy prices and the economy’s ability to adjust to external shocks," the central bank said.

It said that its baseline scenario was for the price of oil to "linger at about $50 for the next three years."

These difficult conditions should help inflation to slow "considerably" in early 2016, the bank said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russia central bank keeps rate unchanged on economic cooling Arab Today, arab today russia central bank keeps rate unchanged on economic cooling

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russia central bank keeps rate unchanged on economic cooling Arab Today, arab today russia central bank keeps rate unchanged on economic cooling

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday